Alliance Data Systems has announced that World Financial Network Credit Card Master Note Trust has issued $950 million of fixed-rate term asset-backed securities. The asset-backed securities were issued as part of the securitization program for Alliance Data’s private label credit card banking subsidiary, World Financial Network National Bank.

The securities consist of three series of notes with an average life of just under three years. Approximately $750 million of the notes are eligible collateral under the US government’s TALF and carry a weighted average fixed rate just under 4%. The remaining approximately $200 million of investment grade securities have been and will continue to be retained by the company and financed through low-cost FDIC-insured CDs, which is consistent with the company’s strategy on recent offerings. RBS, Wells Fargo Securities, and Barclays Capital were the lead advisers to the company.

Ed Heffernan, president and chief executive officer, said: Continuing to secure long-term fixed-rate sources of funding is one of our critical objectives. Accessing the term markets frees-up additional excess liquidity from our other sources of funding such as CDs and bank conduits. This, in turn, supports our plan of augmenting our private label business by taking advantage of the current favorable funding environment for acquiring high-quality credit card portfolios to supplement our organic growth.

Bob Armiak, senior vice president and treasurer, commented: We are thrilled to have locked in term financing at extremely low rates. The one-year series posted the lowest coupon we have ever offered, the three-year series carries a coupon nearly 100 basis points under our historical average, and the four-year series is the very first TALF-eligible credit card transaction — issued by anyone — to extend beyond the three-year TALF window. This is significant in that it demonstrates that investors believe strongly in the Alliance Data model and are committed to our asset-backed securities funding program beyond the TALF loan maturity.

Headquartered in Dallas, Alliance Data is a provider of marketing-driven credit solutions, and is the parent company of Epsilon, a provider of multi-channel, data-driven technologies and marketing services.